Slide 1: Fiscal Q4 2024 Earnings Presentation
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q4 2024 Earnings Presentation Period ended November 2, 2024 December 12, 2024
Slide 2: Forward-looking statements and non-GAAP measures
© Ciena Corporation 2024. All rights reserved. Proprietary Information.2 Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (SEC) filings, recent news, financia
Slide 3: Table of Contents
© Ciena Corporation 2024. All rights reserved. Proprietary Information.3 Table of Contents 1. Overview and Ciena's portfolio 2. Industry context and addressable market expansion 3. Ciena is positioned for accelerated growth 4. Fiscal year 2024 financial performance 5. Fiscal Q4 2024 financial perfor
Slide 4: Overview and Ciena's portfolio
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Overview and Ciena's portfolio
Slide 5: Ciena is an industry-leading global networking systems, services, and software company
© Ciena Corporation 2024. All rights reserved. Proprietary Information.5 Ciena is an industry-leading global networking systems, services, and software company
Slide 6: Our vision for networking: How it works
© Ciena Corporation 2024. All rights reserved. Proprietary Information.6 Our vision for networking: How it works
Slide 7: Our strategy leverages our Optical technology to create expanded addressable market opportunities
© Ciena Corporation 2024. All rights reserved. Proprietary Information.7 Our strategy leverages our Optical technology to create expanded addressable market opportunities
Slide 8: Industry context and addressable market expansion
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Industry context and addressable market expansion
Slide 9: Increasing bandwidth consumption as a driver of network expansion
© Ciena Corporation 2024. All rights reserved. Proprietary Information.9 Increasing bandwidth consumption as a driver of network expansion
Slide 10: Our addressable market expansion strategy allows us to access higher growth markets
© Ciena Corporation 2024. All rights reserved. Proprietary Information.10 Our addressable market expansion strategy allows us to access higher growth markets 1Sources: Dell'Oro, CignalAI, LightCounting, and Ciena internal analysis.
Slide 11: Our market leadership
© Ciena Corporation 2024. All rights reserved. Proprietary Information.11 Our market leadership Optical Transport Report, 3Q24Optical Networking Report, 3Q24 Service Provider Switching & Routing Report, 3Q24 Transport Hardware Report, 3Q24 #1 Globally • Data center interconnect • Purpose-built/compa
Slide 12: Ciena is positioned for accelerated growth
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Ciena is positioned for accelerated growth
Slide 13: Our future growth
© Ciena Corporation 2024. All rights reserved. Proprietary Information.13 Our future growth Long-term growth in core business plus new addressable markets result in opportunity to outpace our traditional revenue CAGR over time
Slide 14: Our portfolio addresses all key applications
© Ciena Corporation 2024. All rights reserved. Proprietary Information.14 Our portfolio addresses all key applications
Slide 15: We expect coherent technology will have growing applications in the AI era
© Ciena Corporation 2024. All rights reserved. Proprietary Information.15 We expect coherent technology will have growing applications in the AI era
Slide 16: Fiscal full-year 2024 results
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Fiscal full-year 2024 results
Slide 17: Fiscal FY 2024 key highlights
© Ciena Corporation 2024. All rights reserved. Proprietary Information.17 Fiscal FY 2024 key highlights ▪ Introduced WaveLogic 6 Extreme the industry’s first 1.6T coherent solution ▪ Added 60 new customers for WaveLogic 5 Extreme 800G and surpassed 150,000 WL5e modems shipped ▪ Continued momentum wi
Slide 18: Fiscal full-year 2024 comparative financial highlights
© Ciena Corporation 2024. All rights reserved. Proprietary Information.18 Fiscal full-year 2024 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. FY 2024 FY 2023 Revenue $4,
Slide 19: Q4 FY 2024 results
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Q4 FY 2024 results
Slide 20: Q4 FY 2024 key highlights
© Ciena Corporation 2024. All rights reserved. Proprietary Information.20 Q4 FY 2024 key highlights ▪ Non-telco represented 48% of total revenue ▪ Direct Cloud Provider revenue grew 53% sequentially ▪ India revenue grew 49% sequentially ▪ Blue Planet revenue grew 17% YoY • Achieved commercial availa
Slide 21: Q4 FY 2024 comparative financial highlights
© Ciena Corporation 2024. All rights reserved. Proprietary Information.21 Q4 FY 2024 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. Q4 FY 2024 Q4 FY 2023 Revenue $1,124.1
Slide 22: Q4 FY 2024 comparative operating metrics
© Ciena Corporation 2024. All rights reserved. Proprietary Information.22 Q4 FY 2024 comparative operating metrics Q4 FY 2024 Q4 FY 2023 Cash and investments $1.33B $1.25B Cash provided by operations $349M $196M DSO 89.0 92.0 Inventory Turns 2.7 2.0 Gross Leverage 3.34x 2.44x Net Debt $274M $373M
Slide 23: Revenue by segment
© Ciena Corporation 2024. All rights reserved. Proprietary Information.23 Revenue by segment (Amounts in millions) Q4 FY 2024 Q4 FY 2023 Revenue %** Revenue %** Networking Platforms Optical Networking $779.6 69.4 $748.0 66.2 Routing and Switching 79.4 7.0 128.9 11.4 Total Networking Platforms 859.0
Slide 24: Revenue derived from non-telco customers
© Ciena Corporation 2024. All rights reserved. Proprietary Information.24 Revenue derived from non-telco customers
Slide 25: Revenue by geographic region
© Ciena Corporation 2024. All rights reserved. Proprietary Information.25 Revenue by geographic region 14.5% 10.8% 9.4%14.5% 20.0% 14.3% 71.0% 69.2% 72.8% 76.3% 17.1% 10.1% 10.8% 13.4% 75.8%
Slide 26: Q4 FY 2024 appendix
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Q4 FY 2024 appendix
Slide 27: Gross Profit Reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.27 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 GAAP gross profit $460,022 $403,945 $388,661 $466,962 $486,281 Share-based compensation-products 1,736 1,660 1,760 1,318 1,194 Share-based compensation-services 3,257 3,12
Slide 28: Operating expense and operating income reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.28 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 GAAP operating expense $400,812 $377,202 $392,626 $382,333 $394,979 Share-based compensation-research and development 14,065 13,118 14,066 12,880 11,412 Share-based compen
Slide 29: Net income and EPS reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.29 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 GAAP net income (loss) $37,028 $14,230 $(16,849) $49,547 $91,199 Exclude GAAP provision (benefit) for income taxes 10,993 2,125 820 21,956 (20,681) Income (loss) before in
Slide 30: EBITDA reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.30 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Net income (loss) (GAAP) $37,028 $14,230 $(16,849) $49,547 $91,199 Add: Interest expense 24,990 24,40